Governor's Column - Moving Forward

Dear Fellow Nebraskans:

At the beginning of this year's legislative session, I outlined a number of challenges that were important for our state to address in order to move Nebraska in a new direction. First and foremost was the need to pass significant tax relief as part of our ongoing effort to transform Nebraska from a high tax state into one with better opportunities for job and economic growth.

Restraining spending in state government was key in providing Nebraska families with the relief they need. We were able to pass the largest tax relief package in the history of this state, totaling $425 million over the next two years, made possible because senators and I collaborated on a budget resulting in a growth rate of 4.5 percent, which is significantly lower than the 6.9 percent annual growth rate of the last two decades.

I applaud the Legislature for their work in passing a responsible budget bill and historic tax relief. The work of state senators helped our state break with previous spending patterns, and I especially appreciate the leadership and work of Sen. Lavon Heidemann of Elk Creek, Chairman of the Appropriations Committee.

There were also two very important reforms passed during this session that will be key in helping move our state forward.

The discussion on how to generate funding for our statewide water challenges was absolutely critical during this session. With the creation of a Water Resources Cash Fund, which will receive funding from a combination of state, local and federal resources, we have ensured that our state has the money needed for projects that ensure compliance with the Republican River Basin Interstate Compact, work toward the goals contained in the Platte River Cooperative Agreement, and continue working with our Natural Resources Districts to develop and implement plans for integrated water management across our state.

There is still a lot of work ahead to accomplish these goals, but the passage of LB 701 put the tools we need to move ahead in place.

The restructuring of the Nebraska Department of Health and Human Services contained in LB 296 represented another significant reform passed during this session. The plan to combine three state agencies into one department have set in motion a series of changes that my administration has already begun to implement. It will take time, but the restructuring bill was a critical step in our efforts to transform this part of state government into a more effective, more efficient, and more accountable agency.

I also want to provide an update on legislation concerning our small, rural schools. During the last day of the session, I vetoed LB 658 and asked lawmakers to consider coming together with rural school leaders to collaborate on a new bill that would provide a reasonable way for small, Class I schools in Nebraska to come back into existence. Small school representatives have agreed to forego a court battle in favor of giving this negotiation a chance. They are willing to meet and discuss a common-sense, reasonable way for Class I schools to recreate themselves.

Several members of the Legislature were swayed by this willingness to come to the table, and voted to uphold my veto of LB 658.

Rural school representatives, legislative leaders and I have agreed to work together in the months ahead to develop a better solution for senators to consider during next year's legislative session. I am encouraged that we have an opportunity for a new beginning and a chance to find a workable solution on this issue.

Significant progress was made during the 2007 legislative session. The willingness of both new and veteran members of the Legislature to confront challenges and find resolutions played a vital role in addressing the issues needed to move Nebraska forward, and I am very grateful for the hard work of the Legislature and the input we've received from Nebraskans.